Coinbase sues SEC, FDIC over FOIA noncompliance

Coinbase has filed lawsuits against the SEC and FDIC, alleging noncompliance with FOIA requests related to Ethereum’s PoS transition. The suits claim regulatory efforts to undermine the crypto industry by excluding it from the banking sector.
Coinbase has filed lawsuits against the SEC and FDIC, alleging noncompliance with FOIA requests related to Ethereum’s PoS transition. The suits claim regulatory efforts to undermine the crypto industry by excluding it from the banking sector.

Coinbase has filed lawsuits against the United States Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC).

According to a FoxBusiness report, the lawsuits, filed on June 27, allege that the SEC and FDIC failed to comply with Freedom of Information Act (FOIA) requests submitted to the U.S. District Court for the District of Columbia.

Coinbases’ lawsuits accuse the federal agencies of attempting to exclude the crypto industry from the banking sector.

Source: Eleanor Terrett

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FOIA requests

The FOIA requests aimed at the SEC sought information on the federal agency’s view on Ethereum, specifically the blockchain’s shift to a proof-of-stake (PoS) consensus mechanism. 

Coinbase asked for records related to Ethereum 2.0 and previous investigations involving Zachary Coburn and Enigma MPC through its consultant firm, History Associates Inc. 

According to the legal documents, History Associates stated:

“For nearly two years, a wide array of federal financial regulators—including the Securities and Exchange Commission (“SEC”), the FDIC, and the Federal Reserve Board — have used every regulatory tool at their disposal to try to cripple the digital-asset industry. This FOIA lawsuit seeks to bring to light the FDIC’s role in that unlawful scheme.”

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Coinbase’s allegations

Coinbase’s complaints argue that the regulatory actions against the crypto industry are part of a broader effort to undermine it.

The lawsuits describe the SEC’s and FDIC’s actions as “a coordinated attempt to cut off digital-asset firms from essential banking services.” 

According to the legal documents, the SEC’s refusal to release records from concluded investigations is seen by Coinbase as:

“A deliberate obstruction to understanding the legal framework behind the agency’s enforcement actions.”

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Ongoing regulatory disputes

This latest legal action is part of what History Associates describes in the legal documents as “Coinbase’s ongoing conflict with U.S. regulators.”

Paul Grewal, Coinbase’s chief legal officer, stated in an X thread:

“Financial regulators have used multiple tools at their disposal to try to cripple the digital-asset industry. [...] This is no way to regulate. And this is no way to operate a transparent government.”
Source: Paul Grewal

According to the legal documents, History Associate highlights the “broader debate over how digital assets should be regulated in the U.S.” as Coinbase advocates for clearer guidelines.

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